Tasek Corp Q3 net profit flat on intense competition, higher production cost

Business & Markets 2013
Written by Cynthia Blemin of theedgemalaysia.com
Friday, 01 November 2013 19:26
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KUALA LUMPUR (Nov 1): Tasek Corporation Bhd reported a flat net profit of
RM23.12 million in the third quarter ended September 30, 2013, compared with
RM23.11 million a year ago, despite higher turnover.
Revenue for the quarter under review of RM143.93 million was 2.5% higher
than the previous year’s RM140.40 million.
“The group's total net revenue for the current quarter of RM143.9 million is
higher than the corresponding quarter of previous year by RM3.5 million mainly
attributable to higher local sales of cement and ready-mixed concrete,” Tasek
told Bursa Malaysia.
Tasek said for the quarter, lower profit margin was seen in the local cement
sector arising from continuous competitive pricing and higher production cost.
But Tasek said the concrete segment registered a lower operating loss during
the current quarter mainly due to higher sales volume and improved profit
margin.
The concrete segment also recorded a lower operating loss of RM206,000 in
the current quarter compared with a loss of RM2.5 million in the corresponding
quarter of previous year, it said.
For the nine months ended September, Tasek Corp recorded a net profit of
RM66.65 million as compared to a higher RM71.13 million from the previous
year.
Revenue for the nine-month period fell 2.02% to RM422.02 million from
RM430.76 million a year ago, despite an increase in local cement sales, it
added.
This was mainly due to lower pricing from the domestic cement segment following the continuous intense price competition among cement
manufacturers, it noted.
The group is expected to continue to remain profitable in the next quarter due to positive outlook on the construction sector, it said.